Fair Work Ombudsman v HSCC Pty Ltd [2020] FCA 655

Fair Work Ombudsman v HSCC Pty Ltd [2020] FCA 655

The Court accepted the agreed penalties and orders as appropriate, taking into account the deliberate, extensive and serious contraventions of the Fair Work Act and Regulations, the exploitation of vulnerable workers, deliberate falsification and use of records, and the necessity of deterrence. The penalties were sufficient for both specific and general deterrence and not oppressive in the aggregate.

Parties
Applicant: Fair Work Ombudsman; First Respondent: HSCC Pty Ltd (ACN 166 005 072); Second Respondent: HSCK Pty Ltd (ACN 163 351 148); Third Respondent: HSPF Pty Ltd (ACN 600 961 046); Fourth Respondent: Deuk Hee Lee; Fifth Respondent: Hokun Hwang; Sixth Respondent: Chang Seok Lee; Seventh Respondent: Ji Won Cho; Eighth Respondent: Junsung Kim
Jurisdiction
Australia
Judgment Date
18 May 2020
Procedural Posture
Civil Penalty Proceeding / Judgment and Final Orders Following Admissions
Outcome
Declarations and pecuniary penalties imposed by consent. Additional remedial and compliance orders made.
Legal Topics
Penalties—fair Work, Wage Theft, Award Contraventions, False Record Keeping, Direct and Accessorial Liability Under Fair Work Act, Specific and General Deterrence
Employment Law Industrial Law Penalties—fair Work Wage Theft Award Contraventions False Record Keeping Direct and Accessorial Liability Under Fair Work Act Specific and General Deterrence

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Parties

Fair Work Ombudsman

Applicant

HSCC Pty Ltd (ACN 166 005 072)

First Respondent

HSCK Pty Ltd (ACN 163 351 148)

Second Respondent

HSPF Pty Ltd (ACN 600 961 046)

Third Respondent

Deuk Hee Lee

Fourth Respondent

Hokun Hwang

Fifth Respondent

Chang Seok Lee

Sixth Respondent

Ji Won Cho

Seventh Respondent

Junsung Kim

Eighth Respondent

Procedural Posture

Civil Penalty Proceeding / Judgment and Final Orders Following Admissions

Legal Issues

  1. 1 Whether the respondents contravened the Fair Work Act 2009 (Cth), Fair Work Regulations 2009 (Cth), and Fast Food Industry Award 2010 as alleged
  2. 2 Appropriate quantum of penalty including the totality principle
  3. 3 Whether the agreed penalty and orders should be accepted by the Court

Ratio Decidendi

The Court accepted the agreed penalties and orders as appropriate, taking into account the deliberate, extensive and serious contraventions of the Fair Work Act and Regulations, the exploitation of vulnerable workers, deliberate falsification and use of records, and the necessity of deterrence. The penalties were sufficient for both specific and general deterrence and not oppressive in the aggregate.

Court Disposition

Declarations and pecuniary penalties imposed by consent. Additional remedial and compliance orders made.

Orders

  • Declarations as to contraventions by all respondents and specific involvement of individual respondents
  • Pecuniary penalties imposed on First Respondent ($225,000), Second Respondent ($225,000), Third Respondent ($150,000), Fourth Respondent ($85,000), Fifth Respondent ($85,000), Sixth Respondent ($75,000), Seventh Respondent ($16,000), Eighth Respondent ($30,000)